Gee, isn't that poor management that allowed union costs to exceed an acceptable limit of cost of operation? And gee whiz, isn't it poor management by Union bosses to not accept an adjusted offer and that allowed the company to follow through on their threat to take Hostess to bankruptcy?<quoted text>
NO, the company couldn't adapt to high costs of employee's. It couldn't lay people off and re-tool....... I'm responding to a out of context copy and paste aren't I?
Two very comparable businesses. The Detroit Auto industry nearly ruined by poor management building lousy cars and over-stuffed unions being more concerned with their pensions nearly causing the demise of the American car.
Albertson's Grocery stores burdened with declining business from the growth of Super Targets and Walmarts plus again over-stuffed union contracts and over-stuffed union leaders who threatened to strike SoCal grocery stores last year because the stores wanted to increase the amount workers would contribute to their health care plan. The only thing that has temporarily saved Albertson's from bankruptcy was Supervalu's greedy CEO who wanted the chain as a way of expanding into the west coast. So again, a poor management decision by Supervalu has them teetering near bankruptcy.
The bottom line is when an established business such as the ones mentioned above go to bankruptcy (either 11 or 7) is generally due mostly to poor management. If you can't control your costs against your profits you might as well close the doors.
NOTHING I WRITE IN TOPIX IS COPY AND PASTE WITHOUT MY TYPING QUOTE MARKS AROUND IT.
I hope that is clear. That is why I capped it!!!